Video Notes: Business Plans and Command Terms — Vocabulary Flashcards

Flashcards cover key concepts from the unit contents of business plans and the IBDP Business Management command terms.

Business plan

A document detailing how a business aims to achieve its goals and objectives; used as a planning tool and to reassure lenders that the idea is sound.

Advantages of business plans

Provides clear direction, acts as a planning tool, helps secure funding by reassuring lenders, and improves chances of achieving business goals and objectives.

Disadvantages of business plans

Time consuming and costly; does not eliminate risk; may lack depth for new entrepreneurs.

The product (detailed components)

Details of goods/services; evidence of customer demand; production details; resource suppliers; pricing methods.

Start-up costs

Costs for premises and other initial investments required to start the business.

Quantifiable objectives

Measurable goals for the proposed business or project.

Marketing plan

Part of the business plan outlining how the product will be marketed and sold.

Pricing methods

Approaches to setting prices for goods/services (e.g., cost-plus, market-based).

Break-even analysis

An analysis to determine when revenue will equal costs, i.e., when the business begins to make a profit.

Cash flow forecasts

Projections of cash inflows and outflows to manage liquidity and avoid shortfalls.

Forecast profit and loss

Projected income statement for the first year of trading.

Forecast balance sheet

Projected statement of assets, liabilities, and equity at a future date.

Rate of return

Expected profitability or return on an investment for investors.

The marketing team

Group responsible for market research, promotion, distribution, and customer engagement.

Market research

Systematic collection of information about consumers and markets to inform decisions.

Test marketing

Trial launch of a product to gauge customer response before full-scale rollout.

Distribution plan

Plan detailing where and how products will be sold and delivered.

Promotional mix

Combination of advertising, sales promotion, public relations, and personal selling.

Unique selling point (USP)

A feature that differentiates the product from competitors.

Quantifiable objectives of the proposed business

Specific, measurable targets the business aims to achieve.

The owner(s) details

Information about who owns the business and their past experience.

Organizational structure of human resources

Framework showing roles, responsibilities, and reporting lines.

Evidence of production location

Information on where production will take place and what equipment is needed.

Supplier details

Information about resource providers such as raw materials and components.

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(Not a concept for flashcard; appears as unit/license note in notes.)

Analyse

Break down in order to bring out the essential elements, structure, assumptions and interrelationships.

Discuss

Offer a considered and balanced review of a topic, with evidence-based opinions.

Compare

Describe two or more situations and note the similarities between them.

Contrast

Describe two or more situations and note the differences between them.

Define

Give a clear and precise meaning of a term.

Describe

Present the characteristics or features of a topic.

Distinguish

Make clear the differences between two or more concepts or terms.

Evaluate

Make an appraisal by weighing up the strengths and limitations of evidence and arguments.

Examine

Investigate in detail to reveal essential elements and interrelationships.

Explain

Make clear the meaning or rationale behind something.

Identify

Recognize and state briefly a distinguishing fact or feature.

Justify

Provide evidence to support or defend a choice or course of action.

Calculate

Give a precise numerical answer.

Classify

Arrange or order by class or categories.

Formulate

Express precisely and systematically the relevant concepts or arguments.

Interpret

Explain the meaning or significance and draw inferences.

Use

Apply knowledge and understanding to explain and, where appropriate, draw inferences.

Make an appraisal

Weigh up the strengths and limitations of different evidence and arguments.

To what extent

Evaluate the extent to which a statement is true or an argument is successful.

Comment

Write an explanation or commentary on information given.

Consider

Examine an argument to uncover assumptions and interrelationships.

Advise

Offer recommendations or describe reasons for a course of action.

Apply

Use an idea or principle in relation to a problem or issue.

Complete

Add missing information or data.

Construct

Present information in a diagrammatic or tabular form.

Outline

Give a brief explanation or summary of the issues or arguments.